Aberdeen Standard Eur Lgstc Inc PLC Acquisition of Second Asset Following IPO (7643Q)
June 08 2018 - 2:29AM
UK Regulatory
TIDMASLI
RNS Number : 7643Q
Aberdeen Standard Eur Lgstc Inc PLC
08 June 2018
Aberdeen Standard European Logistics Income PLC (LSE: ASLI) (the
"Company")
LEI: 213800I9IYIKKNRT3G50
8 June 2018
ACQUISITION OF SECOND ASSET FOLLOWING IPO
'ZUM FLIEGERHORST 1304' LOGISTICS DEVELOPMENT, ERLENSEE FOR
EUR33 MILLION
The Company is pleased to announce that it has exchanged
contracts to acquire a new development in a modern logistics hub
located in Erlensee Langendiebach, Frankfurt for an expected net
value of EUR33.3 million (subject to final rental conditions and
full occupancy) from regional developer Ferdinand Fäth.
The acquisition will be funded from existing cash, following the
successful launch of the Company in December 2017, with completion
expected in September 2018.
This freehold property development is expected to be completed
in September and will consist of two modern multi-let logistic
buildings. It is located within the emerging logistics and
distribution hub of Erlensee, on the outskirts of Frankfurt in the
prosperous Rhine/Main region, the third largest metropolitan region
in Germany with 5.8 million inhabitants. The redevelopment of this
former US air base is proceeding at pace. The location's quality
has already been recognised by a number of major companies
including DS Smith, Dachser Logistics and Wilhelm Brandenburg, the
largest meat processing company in the region, with plans for a
major facility servicing REWE the German supermarket group. It is
expected to become one of the major logistics hubs in the region
benefitting from an excellent road infrastructure serviced by the
A45 and A66 motorways in the north east of Frankfurt and in the
south by the A3 motorway, as well as having direct access to the
Frankfurt metropolitan area.
This development fits well with the Company's investment
strategy given the modern and flexible specifications of the
buildings and the central location. The buildings comprise a total
lettable area of approximately 26,395 square metres featuring high
quality construction and institutional grade specifications
including a total of 50 loading doors. Net initial yield is
expected to be in the region of 5.4% reflecting forecast passing
rent and full occupancy.
An earn-out agreement means that the Company will pay the
purchase price, based on the effective letting of the building,
after completion of the construction works with a minimum occupancy
rate to be delivered by the developer which has already signed
lease agreements with two high quality tenants. Full take-up is
expected for this prime asset by or around the time of
completion.
Evert Castelein, the Company's Fund Manager, commented:
"We are extremely pleased with this premium development
opportunity which we expect to close in September 2018. With the
support of our local Frankfurt based asset management team we are
confident that we can generate a solid and sustainable income
stream from an asset located in an area in which we see strong
demand for modern, best in class logistics facilities.
Our pipeline of investment opportunities remains strong across
Europe. A number of further properties are undergoing due diligence
or have price agreements in place and announcements will be made at
the appropriate time. We remain confident that the deployment of
capital is proceeding as planned as we continue to build a
well-diversified portfolio of high quality European logistics
properties aiming to be fully invested within twelve months of
launch."
For further information:
Aberdeen Fund Managers Limited
0207 463 6000
William Hemmings
Gary Jones
Jonathon McManus
Canaccord Genuity Limited
0207 523 8000
Will Barnett
Neil Brierley
Dominic Waters
David Yovichic
Notes to Editors
Aberdeen Standard European Logistics Income PLC is a UK
investment trust with a premium listing on the Main Market of the
London Stock Exchange. The Company invests in European logistics
real estate to achieve its objective of providing its shareholders
with a regular and attractive level of income return together with
the potential for long term income and capital growth. The Company
aims to invest in a portfolio of assets diversified by both
geography and tenant throughout Europe, predominantly targeting
well-located assets at established distribution hubs and within
population centres.
The Company launched on 15 December 2017 raising gross proceeds
of GBP187.5m. Portfolio management services are undertaken by
Aberdeen Asset Managers Limited.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
ACQFKFDBOBKKOAK
(END) Dow Jones Newswires
June 08, 2018 03:29 ET (07:29 GMT)
Abrdn European Logistics... (LSE:ASLI)
Historical Stock Chart
From Apr 2024 to May 2024
Abrdn European Logistics... (LSE:ASLI)
Historical Stock Chart
From May 2023 to May 2024